Chapter 11 & 12

Front 1

EMPLOYEE COMPENSATION

Back 1

all forms of pay or reward going to employees and arising from their employment

Front 2

DIRECT FINANCIAL PAYMENT

Back 2

pay in the form of wages, salaries, incentives, commissions, and bonuses

Front 3

INDIRECT FINANCIAL PAYMENT

Back 3

pay in the form of finical benefits such as insurance

Front 4

PAY EQUITY

Back 4

Providing equal pay to male-dominated job classes and female-dominated job classes of equal value to the employer

Front 5

EQUITY THEORY

Back 5

a theory suggesting that people are motivated to maintain a balance between what they perceive as their contribution and their reward

Front 6

EXTERNAL EQUITY

Back 6

an employee perception of pay as fair the pay rates in other organizations

Front 7

INTERNAL EQUITY

Back 7

As employee perception of pay as fair given the pay rates of others in the organization

Front 8

BENCHMARK JOBS

Back 8

A job that is critical to the firms operations or that is commonly found in other organizations

Front 9

COMPENSABLE FACTORS

Back 9

A fundamental, compensable element of a job, such as skill, effort, responsibility, and working conditions

Front 10

JOB EVAL COMMITTEE

Back 10

A diverse group established to ensure the fairness and comprehensive representation of the nature and requirements of the job in question.

Front 11

WAGE CURVE

Back 11

A graphic description of the relationship between the value of the job and the average wage paid for this job

Front 12

GRADE

Back 12

Groups of jobs based on a set of rules for each grade, where jobs similar in difficulty but otherwise different. Grades often contain dissimilar jobs, such as secretaries,,mechanics and firefighter

Front 13

CLASSES

Back 13

Groups of jobs based on a set of rules, usually contain similar jobs

Front 14

GRADE/GROUP DESCRIPTION

Back 14

A written description of the level of compensable factors required by jobs in each grade

Front 15

POINT METHOD

Back 15

A job eval method in which a number of compensable factors are identified, the degree to which each of these factors is presented in the job is determined, and an overall point value is calculated

Front 16

MARKET PRICE APPROACH

Back 16

an approach usually limited to determining compensation for professional job based on values established for similar benchmark jobs in the market

Front 17

RED CIRCLE PAY RATE

Back 17

A rate of pay that is above the pay range maximum

Front 18

BROADBANDING

Back 18

Reducing the number of salary grades and ranges into just a few wide levels, each of which then contains a relatively wide range of jobs and salary levels

Front 19

FIXED PAY

Back 19

Compensation that is independent of the individual,group, or organization

Front 20

VARIABLE PAY

Back 20

Any plan that ties pay to productivity or profitability

Front 21

INTRINSIC MOTIVATION

Back 21

Motivation that derives from the pleasure someone gets from doing his or her task

Front 22

EXPECTANCY

Back 22

A persons expectation that his or her effort will lead to performance

Front 23

INSTRUMENTALITY

Back 23

The perceived relationship between successful performance and obtaining the reward

Front 24

VALENCE

Back 24

The perceived value a person attaches to a reward

Front 25

MERIT PAY

Back 25

Any salary increase awarded to an employee based on his or her individual performance

Front 26

EMPLOYEE SHARE PURCHASE/ STOCK OWNERSHIP PLAN

Back 26

A plan whereby a trust is established

Front 27

PROFIT SHARING PLANS

Back 27

A plan whereby most or all employees share in the company's profits

Front 28

GAINSHARING PLANS

Back 28

An incentive plan that engages employee in a common effort to achieve productivity objectives and share the gains

Front 29

PIECEWORK

Back 29

A system of pay based on the number of items processed by each individual worker in a unit of time such as items per hour or items per day

Front 30

straight piecework plans

Back 30

a set payment for each piece produced

Front 31

GUARANTEED PIECEWORK PLAN

Back 31

The minimum hourly wage plus an incentive for each unit produced above a set number of units per hour

Front 32

DIFFERENTIAL PIECE-RATE PLAN

Back 32

A plan by which a worker is paid a basic hourly rate plus an extra percentage of his or her base rate for production exceeding the standard per hour or per day.

Front 33

TEAM OR GROUP INCENTIVE PLAN

Back 33

A plan in which a production standard is set for a specific work group and its members are paid incentives if the group exceeds the production standards

Front 34

CAPITAL ACCUMULATION PROGRAMS

Back 34

Long-term incentives most often reserved for senior executives

Front 35

STOCK OPTIONS

Back 35

The right to purchase a stated number of shares of a company stock at todays price at sometime in the future